Menu
- The Small Account Problem
- RCH Portability Services
- Plan Sponsor Support
- The Missing Participant Problem
- What is a Missing Participant?
- Why Plan Sponsors Should be Concerned
- What Causes Missing Participants?
- The Magnitude of the Problem
- What Regulations Apply to Missing Participants?
- Sources of Uncertainty for Plan Sponsors
- Best Practices for Finding Missing Participants
- What to Look For in a Search Service
- Learn More About Missing Participants
- RCH's Missing Participant Search Service
- Terminating 401(k) Plans
- Participant Testimonials
- Due Diligence Material
- Contact Us
What Causes Missing Participants?
Missing participants are caused by a combination of factors that include:
- Employee turnover / job-changing: DC plan participants change jobs 10 times over the course of a 40-year career. Each year, 14.8 million DC participants will change jobs
- Relocation: Americans will move almost 12 times over the course of a lifetime. In any given year, almost 1 of every 6 Americans will relocate.
- Mortality: 16% of plan participants will die between 40 and 65. One of six participants die prior to normal retirement age
- Lack of retirement savings portability: Barriers to portability result in high volumes of cashouts, plus a growing number of accounts that are “stranded” at job change
- Plan features and changes: Auto enrollment increases the number of small-balance and “unknown” accounts, particularly at low deferral rates. In addition, events occur that change key elements of the plan, such as company mergers, acquisitions, name changes, recordkeeper transitions, etc.
NEXT TOPIC: The Magnitude of the Missing Participant Problem
1916 Ayrsley Town Boulevard